Scotland & Qld: a potted history of centrailsed bond collection

IScottish flagt’s only two years since bonds taken from tenants in Scotland have had to be deposited in a prescribed place.  Before that they were kept in the pocket (or bank accounts) of landlords and we’re guessing that at least some tenants had difficulties getting their bonds back at the end of their tenancy, no matter what condition they left the property in.  Here’s a link to information on the Scottish tenancy deposit scheme here.

We guess that’s what used to happen in Scotland because that’s what it was like in Queensland.  In 1986 the Tenants’ Union of Queensland was formed by a group of tenants and concerned organisations who were tired of bonds being unfairly withheld at the end of tenancies.  Then in 1988, under the Ahern National government, the original tenancy advice program was funded in response to housing issues arising from development around the World Expo 1988 site.

The Tenants’ Union and other tenant advocates pushed for centralised bond lodgement and were key to the formation of the Rental Bond Authority (RBA) in 1989.  The formation of the Authority was strenuously opposed by the real estate and property owner organisations. Continue reading

Gov’t moves on 3 strikes policy for social housing tenants

Tenants'voiceThis article in last Friday’s Brisbane Times reported on a new ‘three strikes’ policy for social housing tenants.  Whilst there is limited detail about the policy at this stage, there are several concerns with this announcement.

Friday’s statement by Housing Minister Tim Mander follows on from previous Housing Minister, Dr Bruce Flegg, who announced the policy intent  at the opening of the National Housing Conference in Brisbane last November. We assume that Minister Mander’s policy will broadly follow the parameters set out in Dr Flegg’s speech. Here’s a quote from that speech:

“The overwhelming majority of public housing tenants do the right thing, however there is a minority whose anti-social behaviour can affect the lives of those around them,” Dr Flegg said.

“I am proposing to crack down on these unruly tenants by asking them to leave if they receive three strikes within 12 months for disruptive behaviour like noisy parties, vandalism or destroying property.

“If tenants have engaged in assault, acts of violence or drug manufacturing, the department would immediately initiate legal action to evict them.

Such statements might sound reasonable to many people and have populist appeal but, when looked at in depth, do they achieve the government’s desired outcome?

This article discusses the following questions: are there unintended consequences for vulnerable households, will these changes undermine due process in dealing with allegations of ‘unruly conduct’; does the government already have the power to do what these changes propose to do; and, is it fair to develop such a policy where there is no tenant advocate to engage with the government about the proposals. Continue reading

Commonwealth makes homelessness funding offer to states

As per today’s media release (see below) from the Federal Minister for Housing, Mark Butler, the Commonwealth have now made their offers to the states regarding a new homelessness partnership agreement. This agreement provides for joint funding from both levels of government for services working to prevent and those working with the homeless.

The current agreement runs out on June 30.  In Queensland, like other states and territories, we are awaiting the state government’s response to the offer to provide clarity for these services as well as for the workers whose jobs rest on the agreement’s outcome.  The govenment’s response may also provide clarity for the future of tenant advice services.   We wait nervously.

Housing Ministers  meet again on March 28. Continue reading

Consumer justice for tenants? Happy World Consumer Day

Scales of justiceToday is World Consumer Rights Day and the theme this year is Consumer Justice:   Click here for more information about it.

Got us thinking about tenants as consumers. Even though having a home is a fundamental human right, since the evolution of modern tenancy laws in the 1970s, tenants have been framed as consumers.  The private rental market consists of tenants as consumers and landlords & real estate as the industry.

As consumers, tenants get a rough ride. When you consider who pays for tenancy dispute resolution, it is clear tenants are getting a raw deal. Tenants’ bond money is used in Queensland to fund the entire operations of the Residential Tenancies Authority (RTA). Continue reading

Homelessness services share concerns with TAAS

The Age Photo: Tanya Lake

The Age Photo: Tanya Lake

An article in the Age on February 25 (click here to read) covers the concerns  of services working with the homeless which are relying on the signing of a new  Homelessness Partnership Agreement (NPA) to secure their funding eyond June 30.                                                                               Their concerns mirrors those of the  Queensland Tenant Advice and Advocacy Services (TAAS), all of which are seeking a commitment from the Newman government to reinstate funding beyond June 30 when current funds run out.  TAAS services received one-off emergency funding from the Commonwealth government after the state government discontinued the Tenant Advice and Advocacy Program (funded from tenant bond interest) on October 31.

When announcing emergency funding, the Commonwealth also announced its intention to require funding for tenant advice services within the up-coming NPA.  Along with clients and workers in the homelessness services, Queensland tenants and advice workers will be hoping this comes to fruition in the very near future.

Privatisation of public housing?

Together Union’s state secretary, Alex Scott, thinks the Newman government may be looking to privatise a range of services including public housing.  We already know that both the state and federal governments intent to transfer some stock from the public to community housing sector, in terms of management and possibly.  Is this what is being alluded to?

Read the article from the Courier Mail here.

Be fair – at least 15% by June!

Did you know that the Residential Tenancies Authority (RTA), which is an   impartial  government authority providing information and other services to lessors, agents and tenants is fully funded from the interest generated on tenants’ bonds?

Less than 15% of tenant bond interest was previously provided to independent specialised tenant advice services and now we want that back. We call on the state government to provide AT LEAST 15% of the interest generated on tenants bonds annually for tenant advice services.

Tenants are effectively paying for services provided to industry – we are unaware of any other industry where that happens – and have now lost the only services specifically targeted to them. 

Come on state government, play fair and keep a level playing field in the residential tenancy sector by restoring funding to tenant advice services now. Without that, services will cease operating by June this year.

If you are concerned about this situation, please write to your local state member of parliament, the Housing Minister, Treasurer and or the Premier. Here’s some information about how you can help   https://savetenantservices.net.au/how-can-i-help/what-you-can-do-to-help-in-2013/

Thanks to Minister O’Connor as he moves to a new portfolio

With Prime Minister Julia Gillard’s cabinet reshuffle last weekend, the Housing sector loses Minister Brendan O’Connor to the immigration portfolio.

In light of this change, Save Tenant Services wants to once again thank Minister O’Connor for his support last year. Minister O’Connor understood that access to our services sometimes means the difference between having a home or becoming homeless.  Three weeks before the state government was to withdraw all funding the the Tenants’ Union of Queensland and the 23 local/regional tenant advice services across the state, Minister O’Connor announced a rescue package.

His intervention – providing interim funding to the end of this June – allowed all 24 services to remain open and continue assisting tenants with their tenancy issues.  We have a battle to win with the state government between now and June to reinstate a tenant advice program in Queensland.  However, we are hopeful that Minister O’Connor’s intervention may be the game changer we needed.

Minister O’Connor has also been trying to embed a requirement on the states and territories to provide tenant advice services as part of a new funding agreement for homelessness services.  This is also due to be finalised by the end of June.  We will be pursuing this with the new Minister for Housing and Homelessness, Minister Mark Butler.

Thank you Minister O’Connor for your foresight, your support and good luck with your new portfolio. And welcome Minister Butler.

Is the company tenant doing a disservice to the average renting household?

The articles linked below seem to imply that it’s easy for tenants to break leases without liability by falsely arguing the lessor is in breach of the agreement. That’s certainly not the experience of the average tenant.  If there is any truth in these claims, perhaps big companies are more able to risk paying out large sums of money in compensation if they can’t prove their case whereas the average tenant is not.

If a party to a dispute believes the claims of the other side are unfounded, the current system allows arbitration at the Queensland Civil and Administrative Tribunal (QCAT) where both parties get to make their case

Renters Claim Defects Jan 31
Balance Sought in Lease Dispute Feb 4

Minister issues press release about flood affected tenancies

The following is a press release from State Housing Minister, Tim Mander, about flood affected tenancies.  We note there is no mention of the great services provided by the Tenants’ Union of Queensland (TUQ) and the Tenant Advice and Advocacy Services.  The TUQ has an excellent fact sheet for tenants.  To see it click here.

The following press release was issued today by the Miinster’s office.

Cleaning   flood damaged rental propertiesHousing   and Public Works Minister Tim Mander has urged tenants and landlords to work   together to arrange the cleaning and repair of rental properties damaged   during this week’s floods.   

“We know that a lot of people are going to be wondering where they stand and who is  responsible for what when it comes to the clean-up process,” Mr Mander   said.   

“At times like this it’s particularly important that tenants and landlords communicate, either directly or through a property manager, about the clean-up and any repairs that are needed.”  Continue reading

The case against the case for negative gearing

This article is reprinted from The Brown Couch, blog site of the Tenants’ Union of New South Wales.  (Read it directly here).

Negative gearing is an issue that is rather close to our hearts. We’re not the biggest fans of this tax break for landlords, and we’ve talked about it a fair bit over the last couple of years. We understand that many landlords don’t feel the same way about it – about 1.12 million of them, in fact. Whenever the question of its efficacy gets a run in the press, we start to see many of its supporters pointing to the calamity of 1985-1987, after the Hawke government trimmed it a little.

(Bob Hawke and Paul Keating
had a bit of a go at negative gearing in 1985)
 
During that time, rents went on a bit of a rampage. It is often claimed that this is because investor sentiment was so damaged by the restrictions to negative gearing (losses could only be offset against rental income, not other income) that landlords simply started to abandon the market. In the face of serious pressure from the propertied classes, the government capitulated, and negative gearing was reinstated in full.
 
We’ve always thought that this was a bit of old hokum, and we’re not the only ones. In April 2011, while the world was gearing up for the National Tax Forum, Saul Eslake pointed out that it was extremely low vacancy rates in Sydney and Perth, and not a nationwide landlord strike, that pushed the national rental yield into the doldrums. More recently Tim Lawless, head of RP Data’s research and analytics team and friend to all Australian property speculators, has published a spiel that appears to support the idea that the great rent rise of ’85 was not the result of changes to negative gearing. Continue reading

State owned Woombye and Lazy Acres Caravan Parks to be run by NFP sector – Minister

Residents of both Woombye and Lazy Acres Caravan Parks will be feeling relief today as the Minister for Housing, Tim Mander, announced neither caravan park will be sold.

On Tuesday Housing Minister Tim Mander announcement that the Monte Carlo Caravan Park will be run by a not for profit housing provider (but remain in state ownership) which, in return, will have to develop new social housing in targeted areas.

Today Minister Mander announced the same deal for the other two state owned parks that were to be sold.  Woombye Caravan Park on the Sunshine Coast and Lazy Acres in Torquay on the Fraser Coast are to be run by a not for profit housing provider after a select tender process.  This will bring some relief to residents of these parks who have been concerned what may happen to the parks if sold, as announced by the government last year.

Save Tenant Services congratulates the Minister on the decision not to sell these parks.

Some relief for Monte Carlo Caravan Park residents

Picture source: The Courier Mail

Save Tenant Services congratulates the Minister for Housing, Minister Mander, on a promising outcome for residents of Monte Carlo Caravan Park.  These residents have been living in fear of the park being sold off since the middle of last year when the government announced it would sell the park.  Minister Mander now says the park will be run by a not for profit housing provider.  See below the Minister’s press release of January 22.Let’s hope there is similar news for the other two parks (Woombye Caravan Park and Lazy Acres in Torquay) which are also subject to the decision to sell made last year by the Newman government.

Win-Win for Monte Carlo Caravan Park
(Minister for Housing & Public Works, Honorable Tim Mander 22-1-13)

The   Monte Carlo Caravan Park on Brisbane’s Southside is set to remain in place   following a State Government announcement which will give a not-for-profit   housing provider the opportunity to run the facility.

The   Newman Government will invite a select group of not-for-profit housing providers to submit expressions of interest in the Cannon Hill site on the condition that it continues to operate as a caravan park.

Under the plan, the successful proponent will take possession of the site in   exchange for an agreement to build new social housing in key target areas.

Minister for Housing and Public Works Tim Mander said the EOI would include respected   providers Horizon, Four Walls, Churches of Christ Care, Brisbane Housing   Company and Bric. Continue reading

A Christmas miracle but where to from here?

This holiday season Queensland tenants will have access to independent tenancy advice services.  Against all odds!  That’s because, as you probably know, on July 24 the Queensland government faxed all 23 services funded through the Tenant Advice and Advocacy Service (TAAS) Program to inform then of the Program’s discontinuation

Communities, tenants and services rallied across the State voicing concern for the loss of these valuable services.  People were outraged that the small amount of tenant bond interest (around 10%) was being withdrawn from the only independent, tenant-focused services available.  Most people thought is unfair that given tenant bond interest is used to wholly fund the Residential Tenancies Authority (Click here for a visual representation of the funding for 2010-11), whose services are provided free of charge to lessors and real estate agents as well as tenants that the relatively small percentage of bond interest provided for tenant specific services was withdrawn. Continue reading